USA: GMA hails elimination of snack tax in the district of Columbia

The District of Columbia's decision to repeal its selective tax on snack foods represents a "hard fought victory for consumers" and continues a trend among governments to turn aside "unfair, regressive, and discriminatory" tax plans, according to the Grocery Manufacturers of America.

On Wednesday, November 8, 2000, the City Council unanimously approved the Tax Clarity Act of 2000 ("Act"), an extensive tax code reform package that includes among its many provisions language streamlining the definition of food which effectively eliminates the District's selective tax on so-called "snack foods."

The Act was sponsored by Council member Jack Evans (D-Ward 2) and introduced before the Council earlier this year.

"We are pleased that Councilman Evans the rest of the City Council have acted affirmatively on the long-sought repeal of the snack tax," said Chip Kunde, GMA Vice President, State Affairs. "This continues a national trend of eliminating confusing and discriminatory tax measures that hinder consumer choice."

The bill will now go to Mayor Anthony Williams (D) and the DC Control Board, who are expected to approve it. After their approval, the bill will be forwarded to Congress in early January where it must remain for 30 legislative days. If Congress takes no steps to reject the measure, it becomes law once the 30 days have expired.

GMA and the Don't Tax Food Coalition, a broad-based group of food manufacturers, associations, and retailers opposed to selective taxation of food products, will continue to advocate for passage of the Tax Clarity Act as it moves through these final review stages.

GMA is the world's largest association of food, beverage and consumer product companies. With U.S. sales of more than $460 billion, GMA members employ more than 2.5 million workers in all 50 states. The organization applies legal, scientific and political expertise from its member companies to vital food, nutrition and public policy issues affecting the industry. Led by a board of 42 Chief Executive Officers, GMA speaks for food and consumer product manufacturers at the state, federal and international levels on legislative and regulatory issues. The association also leads efforts to increase productivity, efficiency and growth in the food, beverage and consumer products industry.

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